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SSSSS [86.1K]
3 years ago
14

Guadalupe’s credit card has an APR of 23%, calculated on the previous monthly balance, and a minimum payment of 2%, starting the

month after the first purchase. Her credit card record for the last 7 months is shown in the table below. How are finance charges calculated?
Business
2 answers:
hoa [83]3 years ago
8 0

Answer:

Attached

Explanation:

This question doesn’t seem to be complete however I’ll try to answer it to the best of my knowledge.

APR refers to the Annual Percentage Rate. APR is applied on whatever money is borrowed from a Credit Card and then the monthly interest is calculated. Minimum Payment is the minimum amount that needs to be paid from the total amount outstanding in order to avoid penalty being charged on the sum borrowed.  

Let me show you an example to demonstrate the concept which will be applicable in almost every scenario:

Month  Sum Borrowed   Outstanding   Interest   Minimum Payment  

1  $3,000.00    

2  $4,500.00   $3,000.00   $57.50   $60.00  

3  $5,600.00   $4,500.00   $86.25   $90.00  

4  $8,000.00   $5,600.00   $107.33   $112.00  

5  $9,000.00   $8,000.00   $153.33   $160.00  

6  $1,000.00   $9,000.00   $172.50   $180.00  

7  $2,800.00   $1,000.00   $19.17   $20.00  

   

*Assume the Limit of Credit Card to be $ 10,000    

*Example of Interest Calculation in Month 2 - ($3000*0.23)/(12)    

*Example of Minimum Payment Calculation in Month 2 - ($3000*0.02)    

 

wlad13 [49]3 years ago
4 0
Interest*previous balance 
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The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Co
ale4655 [162]

Answer:

(a) the earnings per share = $3

(b) the price-earnings ratio = 8x

(c) the dividends per share = $0.25

(d) the dividend yield = 1.04%

Explanation:

Common Stock Outstanding = 5,250,000/25 = 210,000 shares

Preferred Stock Outstanding = 6,000,000/200 = 30,000 shares

Preferred Stock Dividend per share = $4

(a) Earnings Per Share

EPS = <u>Net Income - Preferred Dividend</u>

            Common Stock Outstanding

EPS = <u>750,000 - (30,000 * 4)</u>

                  210,000

EPS = <u>630,000</u>

           210,000

EPS = $3

(b) Price-Earnings Ratio    

Market Price = $24

EPS = $3

P/E ratio = <u>Market Price</u>

                      EPS

P/E ratio = 24/3

P/E ratio = 8x

(c) Dividends Per Share

DPS = <u>               Total Dividends          </u>

             Common Stock Outstanding

DPS = 52,500/210,000

DPS = $0.25

(d) Dividend Yield

DY = <u>Dividend Per Share</u>

                   Price

DY = 0.25/24

DY = 1.04%

6 0
3 years ago
The following note transactions occurred during the year for Towell Company: Nov. 10 Towell issued a 90-day, 9% note payable for
Pani-rosa [81]

Answer: See explanation

Explanation:

The general journal entries necessary to adjust the interest accounts at December 31 will be:

1. December 31:

Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102

Credit: Interest payable = $102

(To accrue interest expenses for the note issued on November 10).

2. December 31:

Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120

Credit: Interest payable = $120

(To accrue interest expenses for the note issued on December 1)

3. December 31:

Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67

Credit: Interest payable = $36.67

(To accrue interest expenses for the note issued on December 20).

3 0
2 years ago
Robert is a single taxpayer who has AGI of $145,000 in 2019; his taxable income is $122,000. What is his federal tax liability f
PolarNik [594]

Answer:

His tax liability for 2019 (due April 2020) is $23,359.50

Explanation:

Since Robert s a single filer, he falls under the fourth tax bracket: income between $84,201 to $160,725. His marginal tax rate is 24%, and his total taxes due are as following:

<u>tax rate</u>         <u>earnings</u>                          <u>taxes due</u>

10%            $0 – $9,875                        $987,50

12%         $9,875 – $40,125                  $3,630

22%        $40,126 – $85,525                $9,988

24%        $85,526 – $122,000              $8,754

                    total                              $23,359.50      

*Option C is the closest one, but it used the 2018 tax brackets, not the 2019.

7 0
3 years ago
ACCOUNTING:
Oksana_A [137]

Explanation:

why is this so much who assigned you this

3 0
3 years ago
Assume that a 6 percent $500,000 bond with semiannual interest payments and a remaining life of 10 years could be purchased toda
Lesechka [4]

Answer:

I will pay $559,864 for this bond

Explanation:

Coupon payment = $500,000 x 6% = $30,000 annually  = $15,000 semiannually

Number of periods = 10 years x 2 = 20 period

Interest Rate = 4.5%  = 2.25% semiannually

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$15,000 x [ ( 1 - ( 1 + 2.25% )^-20 ) / 2.25% ] + [ $1,000 / ( 1 + 2.25% )^20 ]

Price of the Bond = $15,000 x [ ( 1 - ( 1.0225 )^-20 ) / 0.0225 ] + [ $500,000 / ( 1.0225 )^20 ]

Price of the Bond = $239,455.68 + $320,408.24 = $559,863.92

Price of the Bond = $559,864

4 0
3 years ago
Read 2 more answers
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